Driver shortages have contributed to the collapse of a £167 million turnover food distribution business, putting more than 400 jobs at risk.
Administrators from PwC have been called in to take over EVCL Chill Ltd, and related companies EVCL One Limited, EVCL Two Limited and EVCL Three Limited.
They said some 1,092 staff have been affected with 658 transferring to key customers.
Talks with workers whose roles have not been moved over were due to begin today.
As well as “acute” driver shortages, the loss of a number of key contracts has also been blamed.
The Unite union, which has more than 500 members at the company, said: “It is expected that the remaining workers at the company will be made redundant.”
The union has criticised the companies’ venture capitalists Emergevest accusing it of failing to invest.
The administration does not affect the wider EV Cargo Group which continues to trade as before.
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Headquartered in Alfreton, Derbyshire, EVCL Chill mainly operates in chilled food logistics and storage, delivering products for retail customers – including Asda and Sainsbury’s – and suppliers to the 海角视频 food retail market.
It has warehouses and depots in locations including Daventry, Alfreton, Rochdale, Crick, Bristol, and Penrith.
Helen Wheeler-Jones, Eddie Williams and Matthew Hammond of PwC, who have been appointed as joint administrators, said the business has 374 trucks and 432 trailers alongside more than 20,000 pallets of warehousing capacity.
They said: “In the period to December, 2020, turnover at the business exceeded £167 million and was cash generative.
“However, EVCL Chill has struggled with a loss of a number of key customers and acute driver shortages during 2021 which, given its fixed cost base, created significant liquidity challenges.
“A number of sale options were explored but generated limited interest and management took the difficult decision to enter administration.
“Regretfully there are a number of roles that have not been transferred.”
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They said the 658 roles that have been transferred, along with a number of services, had moved to key customers under their contractual arrangements.
Eddie Williams said: “This has been a very difficult situation and involved intense discussions with key stakeholders on an accelerated basis to get to this position.
“As businesses move from survival mode to recovery, the financial climate is still very volatile.
“I am pleased that at least 658 roles will continue in a sector that is already facing many difficulties and challenges around inventory, personnel and the wider supply chain.
“Some vital continuity and stability has been ensured for a number of EVCL Chill’s stakeholders.
“We will continue to fully support all affected staff members during this difficult time.”
Helen Wheeler Jones said: “We will also continue to liaise closely with customers on the key IT and transport requirements needed for them to fulfil orders, alongside other priority stakeholders including HMRC.”
The union said it would help affected members following the collapse of the business.
It said: “Unite, which had over 500 members at the company, is seeking to ensure that the workers employed directly on the Asda and Sainsbury’s contract will be TUPE’d – Transfer of Undertakings [Protection of Employees] – over to work directly for these supermarkets.
“It is hoped some workers not covered by TUPE will be found within the Asda operation.
“It is expected that the remaining workers at the company will be made redundant.
“Unite will be providing support to help the affected workers find new work and will also be seeking to take a protective award on behalf of its members for the failure of the company to inform and consult with them before making them redundant.”
It said it would help workers claim unpaid wages including a 10 per cent pay rise it said it recently negotiated.